The SEC has pushed back hard against ETFs and rejected them for many years. As the industry continued to grow it was no shock when the first one was approved. On October 19th the first-ever Bitcoin ETF was launched.
This ETF received a lot of attention and not just from large investment companies. Retail investors who were reluctant to get into the cryptocurrency space saw an opportunity to take part in this new venture.
Cryptocurrency has not been an easy thing for outsiders to grasp. Constant news of hacks and lost funds can scare away the typical retail investor. Managing wallets and private keys can be a challenge when there are limited guides and resources.
The Bitcoin ETF solves the custody issue of investing in Bitcoin, and the reaction has been incredible. Over $1bn in volume was recorded on launch day. In the first 20 minutes, the Bitcoin ETF saw over a quarter of a billion USD in volume.
At the end of the day, the Bitcoin futures ETF ended almost 5% higher than its starting price. This volume ranks it as the second-highest ETF debut of all time, boasting an incredible start.
Many investors have had their eye on the new trading opportunity. Grayscale Investments that hold the largest amount of Bitcoin are keen to turn the entire holdings into the new Bitcoin ETF.
Bitcoin today has hit a new all-time high and every crypto enthusiast is excited to see the outcome. People believe this ETF will be the catalyst to new price discovery and potentially rocket the crypto to much higher levels.
Analysts will continue to monitor the ETFs performance, if it stays successful then similar products could start launching, and quickly.